Hired & Non-Owned Auto Insurance in Dallas, Texas

What Is Hired & Non-Owned Auto Insurance?

Hired and non-owned auto insurance covers your business for liability claims when employees drive vehicles that your company doesn't own. This includes rental cars your team uses for business trips and personal vehicles employees drive for work-related tasks. Princeton Insurance's insurance agents help you find the right coverage to protect your business from these gaps in protection.

Most businesses assume their commercial auto policy covers all business driving, but that's not always true. If an employee uses their personal car to run a work errand and causes an accident, their personal auto insurance is primary. However, if the claim exceeds their coverage limits, the injured party can come after your business. That's where hired and non-owned auto coverage steps in to protect your company assets.

This coverage is typically added as an endorsement to your general liability policy or business owner's policy. It provides liability protection for bodily injury and property damage caused by employees driving vehicles your business doesn't own. The coverage follows your business, not the vehicle, which makes it different from traditional commercial auto insurance.

What Does Hired & Non-Owned Auto Insurance Cover?

Hired and non-owned auto insurance provides two distinct types of coverage that work together to protect your business. Understanding what each component covers helps you make informed decisions about your business insurance needs.

Hired Auto Coverage

Hired auto coverage protects your business when employees drive rental or leased vehicles for work purposes. This includes:

• Rental cars for business travel or client meetings
• Vehicles leased short-term for business operations
• Substitute vehicles while company cars are being repaired
• Liability for bodily injury caused by an employee driving a rental
• Property damage to other vehicles or structures

If your employee rents a car to visit a client and causes an accident, hired auto coverage pays for damages and injuries to third parties. The rental company's insurance typically covers damage to the rental vehicle itself, but your hired auto coverage protects your business from liability claims.

Non-Owned Auto Coverage

Non-owned auto coverage protects your business when employees use their personal vehicles for work-related activities. Common scenarios include:

• Running errands or making deliveries in personal vehicles
• Driving to client sites or meetings for work
• Picking up supplies or materials for business operations
• Transporting documents or equipment between locations
• Any business-related driving in employee-owned vehicles

This coverage is secondary to the employee's personal auto insurance. If their policy limits are exhausted, your non-owned auto coverage kicks in to pay for additional damages, medical expenses, and legal defense costs. This protects your business from potentially devastating lawsuits that could threaten your company's financial stability.

What's Not Covered

It's important to understand that hired and non-owned auto insurance doesn't cover everything. Excluded items typically include:

• Physical damage to rental vehicles or employee personal vehicles
• Injuries to your employee driving the vehicle
• Vehicles your business owns or leases long-term
• Cargo or property being transported
• Intentional acts or criminal behavior

For vehicles your business owns, you need a separate commercial auto insurance policy. For property being transported, consider inland marine coverage.

How Much Does Hired & Non-Owned Auto Insurance Cost?

The cost of hired and non-owned auto insurance varies based on several factors specific to your business operations and risk profile. Since this coverage is typically added as an endorsement to your general liability or business owner's policy, it's often more affordable than you might expect.

Your premium depends primarily on the number of employees who drive for business purposes. A company with five employees will pay less than one with fifty employees regularly using personal or rental vehicles. The frequency of business driving also matters significantly. Businesses with occasional driving needs pay lower premiums than those with daily driving activities.

The type of driving your employees do affects your rates as well. Local errand running typically costs less to insure than long-distance travel or frequent rental car use. Your industry plays a role too, as some businesses present higher risks than others. Professional service firms often pay less than businesses in construction or delivery-related fields.

Coverage limits you select directly impact your premium. Higher liability limits provide more protection but come with higher costs. However, the difference between minimum coverage and more robust protection is often modest compared to the potential risk exposure. Your business location also influences pricing, as accident rates and litigation trends vary by area.

Your claims history matters significantly. Businesses with clean records typically qualify for better rates than those with previous claims. If your employees have strong driving records, this can positively impact your premium as well. Many carriers offer discounts for businesses that implement driver safety programs or conduct regular motor vehicle record checks.

The best way to find competitive rates is to compare quotes from multiple carriers. An independent agent can shop your coverage across different insurance companies to find the best combination of price and protection for your specific business needs.

Do I Need Hired & Non-Owned Auto Insurance?

If employees ever drive for work purposes in vehicles your business doesn't own, you need hired and non-owned auto insurance. This includes seemingly minor activities like picking up lunch for a client meeting or running to the office supply store. Even occasional business driving creates liability exposure that this coverage addresses.

Many businesses don't realize they have this exposure until it's too late. Your employee's personal auto insurance is primary when they drive their own vehicle, but those limits may not be sufficient for serious accidents. If someone is severely injured and the claim exceeds your employee's personal coverage, your business becomes the target for the remaining damages. This can result in lawsuits that threaten your business assets and future operations.

Professional service businesses particularly need this coverage. Consultants, real estate agents, sales representatives, and other professionals who regularly drive to client locations face constant exposure. Even if you don't require employees to use their personal vehicles, allowing it creates liability for your business.

Businesses that frequently rent vehicles for employee travel should absolutely carry hired auto coverage. Conference attendance, client visits, and business travel all involve rental cars. The liability protection from rental car companies is often minimal, leaving your business exposed to significant claims.

Some contracts and client agreements may require proof of hired and non-owned auto insurance. Many commercial leases and professional service agreements mandate this coverage as a condition of doing business. Without it, you might lose opportunities or face contract violations.

Even businesses with commercial auto policies need to consider this coverage. Your commercial auto policy covers vehicles your business owns or leases long-term. It doesn't typically cover employee personal vehicles or short-term rentals. The gap between these policies can leave your business vulnerable to claims that neither policy covers.

How to Get Hired & Non-Owned Auto Insurance in Dallas

Getting hired and non-owned auto insurance in Dallas starts with understanding your business driving activities. Take inventory of how often employees drive for work, whether they use personal vehicles, and how frequently your business rents vehicles. This information helps determine appropriate coverage limits for your specific situation.

Texas law doesn't specifically require hired and non-owned auto insurance, but the liability risks make it essential for most businesses. Without this coverage, your business assets remain exposed to claims from accidents involving employee driving. The relatively low cost of this coverage compared to the potential exposure makes it a smart investment for Dallas businesses.

Working with an independent insurance agent gives you access to multiple carriers and coverage options. Rather than being limited to one company's offerings, you can compare policies from different insurers to find the best fit. This is particularly valuable for hired and non-owned auto coverage, as pricing and terms can vary significantly between carriers.

Princeton Insurance has served Dallas businesses since 1994, helping local companies protect themselves from liability risks. Our team understands the unique insurance needs of businesses operating in the Dallas area and can guide you through the coverage options that make sense for your situation.

When requesting quotes, be prepared to provide details about your business operations, number of employees, and how vehicles are used for business purposes. Carriers will want to know if you have any existing commercial auto coverage, what types of vehicles employees typically drive, and whether you have driver safety policies in place. More detailed information helps insurers provide accurate quotes tailored to your specific risk profile.

Many businesses add hired and non-owned auto coverage to their existing general liability or business owner's policy. This bundling approach often provides cost savings and simplifies your insurance management. Your agent can review your current coverage and recommend the most efficient way to add this protection to your business insurance program.

Get Your Free Hired & Non-Owned Auto Insurance Quote

Protecting your Dallas business from vehicle liability doesn't have to be complicated or expensive. Hired and non-owned auto insurance fills critical gaps that could otherwise expose your business to devastating claims and lawsuits.

Don't wait until an accident happens to discover you have coverage gaps. The financial and legal consequences of being uninsured when an employee causes an accident while driving for work can threaten everything you've built. Taking action now to secure proper coverage gives you confidence that your business is protected.

Princeton Insurance makes it easy to get the coverage you need. Our team shops multiple carriers to find competitive rates and comprehensive protection for your business. We explain your options clearly so you can make informed decisions about coverage limits and policy terms. Ready to protect your business? Contact our team for a free quote today and discover how affordable hired and non-owned auto insurance can be for your Dallas business.